Fine Gael and Labour, the two largest political parties in the State having achieved historic levels of support in the general election, now seek to use their mandate to
form a Government for National Recovery.
1. STATEMENT OF COMMON PURPOSE
On the 25th February a democratic revolution took place in Ireland. Old beliefs, traditions
and expectations were blown away. The stroke of a pen, in thousands of polling stations,
created this political whirlwind. The public demanded change and looked to parties that
would deliver the change they sought.
In that election record numbers of Irish people turned to, and chose, Fine Gael and Labour.
The people chose our two parties to begin mending the pieces of a fractured society, a broken
economy and to provide a sense of collective hope in our shared future.
It is no exaggeration to say that we now face one of the darkest hours in the history of our
independent state. To deal with this unprecedented national economic emergency, our
country needs an unprecedented level of political resolve. What is needed now after a long
period of reckless, ill disciplined Government is strong, resolute leadership.
That is why Fine Gael and Labour, the two largest political parties in the State having
achieved historic levels of support in the general election, now seek to use their mandate to
form a Government for National Recovery.
A Government that will be built on partnership and parity of esteem between our two parties.
Its key objective will be to repair our society over the next 5 years and get our people back to
work.
We have a secure and stable mandate and we will use it to build a secure and stable
Government. A Government that will restore our country’s finances, will radically reform an
outdated system of administration and will rebuild Ireland’s reputation on the international
stage.
In doing so, both our parties are committed to protecting the vulnerable and to burden-
sharing on an equitable basis. Fianna Fáil presided over an unequal and increasingly divided
2. Ireland. We are both committed to forging a new Ireland that is built on fairness and equal
citizenship.
The Government for National Recovery will strive to ensure that every one of our citizens
has an effective right, free from discrimination, to contribute to the economic, social and
cultural life of the nation. Our aim, when our legislative and constitutional changes are
implemented, is that Ireland will be a transformed country. By the end of our term in
Government Ireland will be recognised as a modern, fair, socially inclusive and equal society
supported by a productive and prosperous economy.
Both parties approach the task ahead with a combination of humility and hope, underscored
with an absolute resolve to bring the change the people so clearly demand. The new
Government will seek to match the spirit, courage and pride of the people, so that our country
can confidently begin a period of renewal.
But the old ways, the old politics that created the crisis from which we seek to release
ourselves from, will not do. Both our parties have long recognised this reality and we
campaigned hard and sought and secured a clear mandate to break from the past and start
anew.
With this in mind new ways, new approaches and new thinking will form the constant
backdrop to the coalition’s style of governance. In all the major areas of public life this
determination to modernise, renew and transform our country will be evident over time as
our shared programme is implemented.
The Government will get our economy moving, restore confidence, fix our banking system
and support the protection and creation of jobs. The success of our economic plans will lay
the foundation for the rest of our agenda for change.
In parallel, there is a clear need for our political system to embrace change, share the burden
and lead by example. Every section of our society is facing hardship. Our political system, if
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3. it is to regain credibility and relevance, must change too. Wider than that, our system of
Government must modernise, adapt to new financial circumstances and start to deliver better
services with scarce resources.
The challenge facing the new Government is unlike any other. Our economy and our politics
have been shattered. But our people’s spirit has not. And that is the spark. The spark that
encourages a new Government to look to the future with a sense of hope. A sense of hope
that with the right plans, the right people, and with a unified sense of purpose our country can
recover.
The Government for National Recovery faces an historic challenge. The trust of the nation
has been invested in it. It is committed to honouring that trust. At all times it will meet each
task guided and informed by some words first spoken by Albert Einstein:
“Learn from yesterday, live for today, hope for tomorrow.”
The new Government has to show too that it has learned from the past. Our Programme
reflects the new reality that our politics and our government can, and must, change. The new
Government is determined to make each day count as we begin a slow but deliberate renewal
of our country.
Our country deserves a fresh start from the failed politics of the years past. It also deserves a
new hope that a new Government guided by the needs of the many rather than the greed of
the few can make a real, positive difference in their lives.
There isn’t a moment to be lost.
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4. Economy
Banking and Re-Negotiation of the IMF/EU Programme of Support
As a result of reckless mismanagement of the Irish economy by recent Governments, Ireland
faces a profound banking, fiscal and jobs crisis, and has been forced to seek external financial
assistance. This has been provided by the IMF and the EU through an assistance programme
that provides a loan facility to Ireland.
At the core of the loss of domestic and international confidence in Ireland’s economy has
been the outgoing Government’s commitment – between NAMA asset purchases and the
subsequent recapitalisation – of over !100 billion of State resources to bank rescues. This is
three times the national debt before the crisis.
Much of this taxpayer commitment reflected the policy to crystallise – through asset transfers
to NAMA – massive losses in banks under taxpayer guarantee at a time of extraordinary
financial distress.
If it were not for the historical and potential future losses for Irish taxpayers from the
outgoing Government’s banking policy, Ireland’s public finance problems would be acutely
difficult but nonetheless entirely manageable.
The outgoing Government’s “blank cheques for banks” policy must now be ended. We must
step back from the edge of national insolvency.
The new Government supports the objectives of the EU/IMF Programme of Support i.e.
restructuring and recapitalising the banking system, achieving fiscal stability and returning the
Irish economy to growth.
However, it is observable to all that the Programme of Support has – to date – failed to restore
confidence in the Irish economy. In the view of the new Government, this reflects uncertainty
over the affordability of the rescue package, and in particular the unknown but potentially
enormous cost to the Irish taxpayer from the continuation of existing policies aimed at
resolving the banking crisis.
Moreover, the failure of the Programme of Support to restore confidence in the financial
health of Irish banks or the Irish State continues to contribute to wider euro-zone financial
instability.
On this basis, both parties to the new Government sought, and secured, a strong mandate from
the Irish electorate to renegotiate a more credible package that is better for both Ireland and
Europe
The overall aim of renegotiation must be to secure a Programme of Support and solution to
the banking crisis that is perceived as more affordable by both the Irish public and
international markets, thereby restoring confidence, growth, job creation and the State’s
access to affordable credit from private lenders. The Parties to the Government recognise that
there is a growing danger of the State’s debt burden becoming unsustainable and that
measures to safeguard debt sustainability must be urgently explored.
5. In our engagement with the lenders, we will pursue a number of different strategies to achieve
this end.
• We will seek a reduced interest rate as part of a credible re-commitment to reducing
Government deficits to ensure sustainability of our public finances.
• We will re-commit to structural reforms required to accelerate growth, job creation and
debt sustainability.
• We will attach the utmost priority to avoiding further down-grades to our sovereign credit
rating by setting further capital spend by the State on bank re-capitalisation at a level that
is consistent with national debt sustainability.
• In this regard, we will defer further recapitalisation of the banks until the solvency stress
tests are complete and known to the new Government. Earlier recapitalisation in advance
of publication of the stress tests will not contribute to market stability and confidence.
• We remain committed to a smaller banking system that reduces its reliance on funding
from the Irish and European Central Banks and volatile market sources. In order,
however, to limit further calls on the State to cover bank losses from distressed asset sales,
bank deleveraging must be paced to match the return of more normal market conditions
and demand for bank assets.
• As an interim measure, we will seek to replace emergency lending to our banks with
medium-term, affordable, official financing in a way that can restore confidence among
other potential lenders in the liquidity position of our banks.
• We will end further asset transfers to NAMA, which are unlikely to improve market
confidence in either the banks or the State.
• We will ensure that an adequate pool of credit is available to fund small and medium-
sized businesses in the real economy during the re-structuring and down-sizing
programme.
• We will introduce a comprehensive special resolution regime for dealing with bank
insolvencies.
• The Government accepts that enabling provisions in legislation may be necessary to
extend the scope of bank liability restructuring to include unsecured, unguaranteed senior
bonds.
• The new Government will seek to dispose of the public stakes in the banks as soon as
possible at the best possible return to the taxpayer.
• We will create an integrated decision making structure among all relevant State
Departments and Agencies to replace the current fragmented approach of State bodies in
dealing with the financial crisis.
6. A key challenge for the new Government will be to make our banking system an engine of
economic recovery by restoring public and market confidence in its financial health,
management competence and ethical integrity.
• The new Government will re-structure bank boards and replace directors who presided
over failed lending practices. We will ensure that the regulator has sufficient powers of
pre-approval of bank directors and senior executives. To expedite this change-over we
will openly construct a pool of globally experienced financial services managers and
directors to be inserted into key executive and non-executive positions in banks receiving
taxpayer support.
• We will insist on the highest standards of transparency in the operation of NAMA, on
reduction in the costs associated with the operation of NAMA, and that decision-making
in NAMA does not delay the restoration of the Irish property market.
• Once the banking sector has been restored and is functioning effectively, we will
introduce a bank levy based on the size of a bank’s liabilities (other than shareholder
capital).
• We will establish a Strategic Investment Bank
• We recognise the important role of Credit Unions as a volunteer co-operative movement
and the distinction between them and other types of financial institutions. In Government,
we will establish a Commission to review the future of the credit union movement and
make recommendations in relation to the most effective regulatory structure for Credit
Unions, taking into account their not-for-profit mandate, their volunteer ethos and
community focus, while paying due regard to the need to fully protect depositors savings
and financial stability.
• We support the future development of the IFSC as a source of future employment growth,
subject to appropriate regulation. We will establish a taskforce on the future of the
financial services sector to maximise employment opportunities in financial services for
staff leaving employment as a result of downsizing.
• We will ensure that the investigations into failures in the banking system are adequately
resourced.
• All remuneration schemes at banks subject to state support will undergo a fundamental
review to ensure an alignment of interest between banks, their staff and the taxpayer.
2011 Jobs Programme
The big challenge for Ireland is to develop a strategy that will allow job growth and
sustainable enterprise. Job creation is central to any recovery strategy. Every person who
leaves the dole and goes back to work reduces the deficit by an estimated !20,000, spends on
average an additional !15,000 on goods and services and also reduces the risk on the banks
mortgage books.
We will - within the first 100 days – resource a Jobs Fund which will
7. • Provide resources for an additional 15,000 places in training, work experience and
educational opportunities for those who are out of work;
• Cut the 13.5% rate of VAT to 12% up to end 2013;
• Halve the lower 8.5% rate of PRSI up to end 2013 on jobs paying up to !356 per week;
• Reverse the cut in the minimum wage;
• Abolish the Travel Tax as part of a deal with airlines to restore lost routes;
• Implement a number of sectoral initiatives in areas that will create employment in the
domestic economy;
• Initiate a long-term strategy to develop new markets in emerging economies;
• Secure additional resources for the national housing energy retrofitting plan, as part of
plans to phase out subsidies in this area by 2014;
• Expand eligibility for the back to education allowance; and
• Accelerate capital works that are ‘shovel ready’ and labour intensive including schools
and secondary roads.
Labour Market Policy
We will a develop new graduate and apprentice internship scheme, work placement
programmes and further education opportunities for our young unemployed providing an
additional 60,000 places across a range of schemes and initiatives. We will provide a range of
initiatives to increase access to further higher level education for the unemployed.
We will make Literacy and basic workplace skills a national priority, with literacy training
incorporated into wider variety of further education and training.
Within this total, we will provide 30,000 additional training places across the education and
training system, distributed in line with the recommendations of the Expert Group on Future
Skills Needs.
We will replace FAS with a new National Employment and Entitlements Service so that all
employment and benefit support services will be integrated in a single delivery unit managed
by the Department of Social Protection. This integrated service would provide a ‘one stop
shop’ for people seeking to establish their benefit entitlements; looking for a job; and seeking
advice about their training options.
It will process citizen entitlements such as supplementary welfare allowances, higher
education grants and welfare allowances. It will manage as much as possible means testing for
State entitlements. It will also be responsible for employment referral and training supports
provided by FÁS. This service will offer users a higher level of personalised employment
counselling, with more frequent face-to-face interviews. Those on the live register who are
identified as being most at risk of long-term unemployment will receive priority treatment for
more intensive support. It will ensure active case management for people in need of
assistance.
Increasing Exports
Ireland’s economic recovery must be export-led. We will take a number of actions to achieve
the maximum growth in exports, including the long-term development of new markets.
8. We will establish an Export Trade Council to strengthen cooperation and coordination across
all key departments and agencies involved in promotion and development of trade and
exports, whose membership will be divided equally between government and private sector
representatives who have experience in establishing and growing export-oriented business.
We will create a new ‘Home to Export’ programme to share the expertise of exporting
companies with firms currently reliant on domestic markets. A ‘Source Ireland’ portal will be
developed to market Irish goods and services abroad.
We will position Ireland to develop better trade relationships with emerging economies,
including the establishment of local trade and investment teams. These teams will execute
detailed local market plan, with progress against targets reviewed annually. We will develop
cultural and diplomatic links with emerging markets including a scholarship scheme. We will
actively develop the export of educational services.
We will exempt from VAT service companies that export more than 90% of their output.
Innovation and Commercialisation
We will implement innovation and commercialisation policies as outlined below subject to
cost benefit analysis.
• We will progressively implement the recommendations in the Trading and Investing in
the Smart Economy Report
• We will support our indigenous digital game industry by reforming R&D supports
available to the industry, setting aside funding from Innovation Fund Ireland for a seed
capital scheme for Irish digital gaming start-ups, introduce a digital media component
to Transition Year programmes and promote Ireland as digital gaming hub.
• We will develop Ireland as a ‘digital island’ and first-mover when it comes to
information technology by ensuring more progress on e-Government and moving
Government services online, investing in ICT in schools, and investing in information
technology in the healthcare sector.
• We will make Ireland a leader in the emerging I.T. market of cloud computing by
promoting greater use of cloud computing in the public sector, organising existing
State supports for cloud computing into a package to promote Ireland as a progressive
place for I.T. investment, establishing an expert group to address new security and
privacy issues arising from the use of cloud computing and reviewing the adequacy of
current legislation and identify what steps need to be taken to ensure a supportive
regulatory environment.
• We will develop a National Intellectual Property (IP) protocol to give predictability
about the terms on which business can access IP created in Higher Education
Institutions and the wider digital sector.
9. • We will promote and support investment in technology research, development and
commercialisation beyond basic research supported by Science Foundation Ireland, as
well as removing barriers to innovation and accelerate exploitation of new
technologies.
• We will target key technology areas and sectors where innovation can be applied
including but not limited to high value manufacturing, advanced materials,
nanotechnology, bioscience, electronics, photonics and electrical systems and
information and communication technology. We will also focus on the application of
technological innovation in established sectors of the economy like energy generation
and supply, transport, creative industries, high-value services and architecture and
construction by identifying challenges, establishing priorities and developing
strategies which specify necessary actions to transition to more innovative approach.
• We will promote Ireland’s full engagement with the ‘Innovative Union’ proposals
issued by the European Commission in October 2010 as one of the seven flagship
initiatives under EU2020 Strategy, with the specific aim of refocusing R&D and
innovation policy on major challenges and at turning inventions into products.
• The critical gap between basic research promoted and funded by Science Foundation
Ireland and third level institutions and its subsequent development into commercial
opportunity for investors can only be closed by making new technologies ‘investment
ready’. We will establish a network of Technology Research Centres focused on
applied technological research in specific areas, to be linked to appropriate higher-
education institutions. The centres will accelerate exploitation of new technologies by
providing infrastructure that bridges gap between research and technology
commercialisation. We will initially establish 3 additional centres foccussing on
biotechnology, nanotechnology and high value manufacturing. Further centres from a
number of other areas will be selected at a later time.
• We will support the development of an International Content Services Centre to make
Ireland world leader in managing intellectual property.
• We will pioneer within the EU a model of ‘fair use’ in European Copyright Law, like
in the USA, which effectively permits the use of portions of a copyrighted work so
long as the normal economic exploitation of the originating work is not undermined.
This will allow internet companies and other digital innovators to bring their services
to market.
Subject to a cost benefit analysis, we will amend the R&D tax credit regime to make it more
attractive and accessible to smaller businesses, in the following ways:
• Companies with R&D expenditures of under !100,000 will be entitled to full tax
credit on those entire expenditures as opposed to just the increment over the base year,
with marginal relief for companies with expenditure just over !100,000.
• We will allow companies to offset the R&D credit against employers. PRSI as an
alternative to corporation tax.
• To cut down on red tape in the applications process, companies in receipt of a
Research, Technology and Innovation (RTI) grant from one of the development
agencies will be automatically deemed as entitled to the R&D tax credit.
10. Supporting SMEs
We will reform public procurement to become a tool to support innovative Irish firms and to
allow greater access to Irish small and medium sized businesses.
We will fast-track the substantial reforms needed for our bankruptcy legislation to bring us
into line with best international standards, focusing on a flexible personal bankruptcy system
that reduces discharge time for honest bankrupts.
We will reform the Joint Labour Committee structure, beginning with the appointment of
independent chairpersons to JLCs, who will retain a casting vote. Reform options will
examine the rate of pay for atypical hours.
We will legislate to end upward only rent reviews for existing leases.
We will direct the Revenue Commissioners to examine the feasibility of introducing – on a
revenue neutral basis – a Single Business Tax for micro enterprises (with a turnover of less
than !75,000 per annum) to replace all the existing taxes on sole traders and small businesses
to cut compliance costs and make starting a business much less daunting.
We will reduce the cost of Government imposed red-tape on business, in part by streamlining
regulatory enforcement activities out of a merger and rationalisation of existing structures. We
will create a Business Inspection and Licensing Authority that absorbs the existing business
inspection activities of the Health and Safety Authority, and the National Consumer Agency.
We will create a single food safety monitoring agency, building on the existing Food Safety
Authority, responsible for food safety inspection from farm to fork. This will enhance the
food traceability system and reduce the burden of red tape on business.
We will develop a Unique Business Identifier for use by all government departments and
agencies that will facilitate the sharing of information within Government and reduce
repetitive information requests from businesses.
We will require Departments to publish Regulatory Impact Assessments (RIAs) before
Government decisions are taken, thereby offering a further channel to obtain the views of civil
society on new rules and regulations.
We will introduce new legally binding voluntary commercial debt plan structures to allow
small businesses to restructure debts without recourse to expensive court procedures.
We will introduce new legislation to protect all small building subcontractors that have been
denied payments from bigger companies.
Financial Services and Credit to Business
We will implement a temporary, partial credit guarantee scheme that will provide a level of
insurance to banks against losses on qualifying loans to job-creating firms to get banks
lending again to industry and entrepreneurs.
11. We will construct a !100 million Microfinance Start-Up Fund that will provide start-up loans
and equity that draws funding from the NPRF and private institutional funds.
We will support the development of a more dynamic, venture capital industry in Ireland by
seeking to attract top tier venture financing and investment companies to Ireland, such as
Silicon Valley Bank.
We will work to promote a greater appreciation of the co-operative model as a distinct form
of organisation, ensure a level playing field between co-operatives and the other legal options
for structuring enterprise activities, and provide a conductive framework for the full potential
of the co-operative model to be realised, including in areas such as childcare, education,
housing, energy retrofitting, environmental protection, transport and healthcare.
Sectoral Strategies
Together with significant reforms and initiatives to improve the overall competitiveness of the
economy, its capacity for innovation, its export performance, and the skills of our labour
market, as outlined in this Programme for Government, we will also undertake a number of
specific sectoral strategies for job creation in the domestic economy. These include initiatives
in the retail and SME sectors, and in ICT. Other sectoral strategies include:
Growing the agri-food sector
• CAP reform will be vital for the future development of the agri-food sector. Our
primary aim is to secure a fair overall funding envelope for agriculture under the CAP
and a fair share of this budget for Irish agriculture.
• We will prioritise a Single Farm Payment system which best benefits active Irish
farmers and the Irish grass based system of production.
• Further expansion and innovation in our dairy and meat sectors will be a key priority
under a reformed CAP and we will work with industry to achieve more intensive
levels of production.
• We will facilitate cooperation in the sector to move towards market-based pricing in
order to reflect improved products and innovation in the meat and dairy sectors and
the development of more integrated supply chains.
• We will promote greater land mobility and involvement of young farmers by
investigating new farm models and farm partnerships between farmers, while retaining
our family farm structure.
• We will work at an EU level to ensure that programmes targeting the involvement of
young farmers in agriculture will be a key policy of the CAP.
• We will legislate to ban a number of unfair trading practices in the retail sector, such
as ‘hello money’ from food suppliers.
• New food businesses will be developed through a series of coordinated efforts across
the food sector and state agencies, such as building pilot plant kitchens to allow food
producers develop and manufacture products on small scale and development by
Enterprise Ireland of scaleable manufacturing solutions for food businesses that have
the capacity to expand.
• We will develop a single brand for the Irish agri-food sector globally. Bord Bia will
also work in cooperation with producers and small businesses to develop value-added
Irish food brands, such an eco brand, and local brands.
12. • We will put in place an Irish seafood strategy to develop Ireland as a European hub for
seafood processing, and to grow market profile and demand for Irish seafood products.
Bord Iascaigh Mhara will be tasked with assisting Irish companies in adding value to
products through innovation.
Improving our tourism product
• International access is vital to tourism recovery. We will abolish the !3 travel tax
subject to a deal being agreed with Ryanair and Aer Lingus to re-open closed routes
and bring more tourists into Ireland. If no deal can be done, there will be no reduction
in the tax.
• We will prioritise the Tourism Marketing Fund as an essential pillar of our tourism
strategy and will ensure the best return on Exchequer spending.
• We will explore the possibility of a new agreement on visitor visas with the UK,
offering tourists the opportunity to visit the UK and Ireland with one visa, at a
reasonable cost to tap into the tourism market for significant events such as the
forthcoming London 2012 Olympics.
• Marketing campaigns will be developed in emerging long haul markets such as China,
Russia, India, Japan and the Middle East, using the Tourism Marketing Fund.
Recovery of market share in Britain will also be a key priority in a revamped tourism
strategy.
• Improving the e-capability of our tourism product will be a priority.
• We will target available resources at developing and co-ordinating niche tourism
products and activity packages that are attractive to international visitors focusing on
food, sports, culture, ecotourism, activity breaks, water-based recreation and festivals.
• Event tourism will be prioritised to continue to bring major fairs and events to Ireland
such as the Volvo Ocean Race or Solheim Cup.
International Education
• A National Strategy for International Education will be implemented, to develop the
‘Education Ireland’ brand, to encourage more international students to study here and
to create new jobs in the sector.
• Our objective will be to double number of international students studying in Ireland,
particularly targeting students from India, China and the Middle East.
• This policy will be pursued in line with employment, academic and skill requirements
of overall economy and education sector.
• We will overhaul the student visa system and ensure advertising, diaspora policies and
quality assurance systems are strategically developed to best position the international
education sector.
• We will permit postgraduate students to be allowed work here for up to a year after
they complete their studies. High-value research students will be permitted to bring
families if they are staying more than two years.
13. Green jobs
• We will double funding for home energy efficiency and renewable energy
programmes until the end of 2013, after which time these schemes will be ended.
After 2013, we will roll out a ‘pay as you save’ scheme to continue home energy
efficiency retrofitting work without recourse to public funding. We will explore the
use of funding options such as an Energy Efficiency Obligation on energy suppliers.
• We will tender for a ‘pay as you save’ contract to insulate all public buildings in the
state, where the contractor provides the capital.
• We will seek to establish Ireland as a renewable manufacturing hub to attract
international and domestic investment. We will also position Ireland as a leading
player in the global carbon market, and a centre of excellence in the management of
carbon.
• We will facilitate the development of energy co-operatives to make it easier for small-
scale renewable energy providers to contribute to our renewables target.
Social Enterprise
The Government will promote the development of a vibrant and effective social enterprise
sector. We will instruct agencies to view social enterprises as important stakeholders in
rejuvenating local economies. We will continue support for social innovation projects for
young people trough education, community and voluntary structures.
Investment Strategy
We will draw up a new National Development Plan that reflects Ireland’s changed economic
circumstances, covering the seven-year period 2012-2019.
The plan will be based on a comprehensive study of Ireland’s public investment priorities
over that period.
In the initial years, when resources will be most heavily constrained, we will prioritise
investment in school building, non-national roads, healthcare, and in job-creation.
We will insist that major capital projects are subjected to proper cost-benefit analysis and
evaluation, improving future productivity and growth prospects, and that the value-for-money
obtained is significantly enhanced compared to the most recent period.
The new NDP will be based on traditional exchequer capital spending, plus other resources to
be invested from the National Pension Reserve Fund, on the basis of obtaining a return on
investment and that does not impact the Government Balance Sheet.
In developing the new NDP, we will re-examine the investment programmes of the semi-state
companies to ensure that they are in line with new economic circumstances.
In order to ensure that public enterprise plays a full role in Ireland’s economic recovery, we
will create a holding company to manage the state’s holdings of the semi-states, and to co-
ordinate investment in key priority areas identified by the Government, including energy,
water and forestry.
14. We will create a Strategic Investment Bank that will become a provider of finance to large
capital projects, a conduit for venture capital and a lender to SMEs.
NewERA
The Government will put in place a parallel, commercially-financed investment programme in
key networks of the economy to support demand and employment in the short-term, and to
provide the basis for sustainable, export-led jobs and growth for the next generation.
Under the NewERA plan, streamlined and restructured semi-States will make significant
additional investments, over and above current plans, over the next four years in “next
generation” infrastructures in energy, broadband, forestry and water.
These investments – and the accompanying semi-state restructuring process – will be financed
and pro-actively managed by a New Economy and Recovery Authority (NewERA), which
will absorb the National Pension Reserve Commission.
Subject to finalisation in the National Development Plan, we propose to make additional
investments in the following areas:
A New Water Network: The new Government will create Irish Water, a new State company
that will take over the water investment maintenance programmes of the 34 existing local
authorities. It will supervise and accelerate the planned investments needed to upgrade the
State’s inefficient and leaking water network so has proved so unreliable during the recent
harsh water conditions.
A Next General Telecoms Network: NewERA will co-invest with the private sector and
commercial semi State sector to provide next generation broadband to every home and
business in the state. This will be achieved by delivering fibre to the home or kerb for 90% of
homes and businesses in Ireland with the remaining 10% provided with high speed mobile or
satellite broadband.
A 21st century “Smart Grid”: Beginning with the hand-over of ESB’s transmission assets to
Eirgrid, we will create a new ‘Smart Grid’ company with ultimate full ownership and
responsibility for the development of Ireland’s electricity and gas networks.
Bio-Energy and Forestry: To accelerate the development of Ireland’s forestry and bio-
energies, NewERA will merge together Bord na Mona and Coillte to create a new State
company called BioEnergy Ireland to become a global leader in the commercialisation of next
generation bio-energy technologies, including an annual 14,700 hectare afforestation
programme.
Sale of State Assets
Over time, we also propose to finance the investment programme from the sale of certain state
assets.
We will target up to !2 billion in sales of non-strategic state assets drawing from the
recommendations of the McCarthy Review Group on State Assets when available.
15. Assets will only be sold when market conditions are right and when adequate regulatory
structures have been established to protect consumer interests.
Fiscal Policy
We believe that sustainable public finances are a pre-requisite for economic stability and
growth. To this end, the State must pursue a determined deficit reduction strategy. This must
not, however, undermine short-term recovery, or investment for long-term growth, which
would have the effect of undermining debt-sustainability.
The new Government also recognises the unusual degree of uncertainty regarding the short
and medium term growth prospects for both Ireland and out trading partners.
We believe it is appropriate, in order to enhance international credibility, to stick to the
aggregate adjustment as set out in the National Recovery Plan for the combined period 2011-
2012.
In preparation for Budget 2013, we will review progress on deficit reduction, and draw up a
plan which will achieve the objective of reaching the 3% of GDP target for the General
Government Deficit by the target date of 2015.
Should Ireland succeed in obtaining a lower interest rate on its loans, this should be offset
against the aggregate adjustment required over the term of the programme.
We believe that achieving the 3% of GDP deficit target should be seen as an intermediate step
in the process of restoring the public finances, and that further reductions in the general
government deficit as a share of national income will be required thereafter.
As part of our fiscal strategy the new Government will:
• Keep the corporate tax rate at 12.5%;
• Maintain the current rates of income tax together with bands and credits. We will not
increase the top marginal rates of taxes on income. We will reduce, cap or abolish
property tax reliefs and other tax shelters which benefit very high income earners. We
will also ensure the implementation of a minimum effective tax rate of 30% for very
high earners;
• Consider, arising from the previous Government’s deal with the IMF, various options
for a site valuation tax. Any site valuation tax must take into account the significant
number of households in mortgage distress and provide local government with a
reliable stream of revenue;
• We will limit the top rate of VAT to 23%;
• There will be no increase in the standard 10.75% rate of employers PRSI;
• We will review the Universal Social Charge;
• We will ensure that tax exiles make a fair contribution to the Exchequer;
• Re-prioritise capital funding for smaller projects that deal with specific immediate
problems. Smaller projects are more labour intensive and more likely to be carried out
by local contractors increasing short-run domestic economic impact. Investment
priorities will include education, health and science and technology;
16. • Undertake a full review of the Hunt and OECD reports into third level funding before
end of 2011. Our goal is to introduce a funding system that will provide third level
institutions with reliable funding but does not impact access for students;
• Bring in a range of measures to tackle the problem of welfare fraud. As part of this we
will create a new “one-stop shop” Payments and Entitlements Service to process all
major welfare and other entitlements;
• To achieve better quality water and environment we will introduce a fair funding
model to deliver clean and reliable water. We will first establish a new State owned
water utility company to take over responsibility from the separate local authorities for
Ireland’s water infrastructure and to drive new investment. The objective is to install
water meters in every household in Ireland and move to a charging system that is
based on use above the free allowance;
• Conduct a Comprehensive Spending Review to examine all areas of public spending
and to assess effectiveness of spending programmes and value for company;
• Establish a Tax and Social Welfare Commission to examine entitlements of self
employed and the elimination of disincentives to employment.
17. Constitutional Reform
The context for reform
Building on the well-established and tested Constitution of Ireland, and decades of judicial
determination of rights under that Constitution, we will establish a process to ensure that our
Constitution meets the challenges of the 21st century, by addressing a number of specific
urgent issues as well as establishing a Constitutional Convention to undertake a wider review.
Parliamentary reform issues
We will prioritise putting to the people by referendum a number of urgent parliamentary
reform issues:
• Abolition of the Seanad
• A referendum to amend the Constitution to reverse the effects of the Abbeylara
judgment to enable Oireachtas committees to carry out full investigations.
• A referendum to protect the right of citizens to communicate in confidence with
public representatives.
Other specific priority amendments
We will also give priority to the following specific constitutional amendments:
• A referendum to amend the Constitution to allow the State to cut the salaries of judges
in restricted circumstances as part of a general cut across the public sector.
• A referendum to amend the Constitution to ensure that children’s rights are
strengthened, along the lines recommended by the All-Party Oireachtas committee.
Broader constitutional review
We will establish a Constitutional Convention to consider comprehensive constitutional
reform, with a brief to consider, as a whole or in sub-groups, and report within 12 months on
the following:
• Review of our Dáil electoral system.
• Reducing the presidential term to 5 years and aligning it with the local and European
elections
• Provision for same-sex marriage.
• Amending the clause on women in the home and encourage greater participation of
women in public life.
• Removing blasphemy from the Constitution
• Possible reduction of the voting age.
• Other relevant constitutional amendments that may be recommended by the
Convention.
18. Political Reform
Change must start at the top
The political system cannot ask others to change and make sacrifices if it is not prepared to
do the same. We will significantly reduce the size of the Oireachtas by abolishing the Seanad,
if the public approve in constitutional referendum, and we will reduce the number of TDs
following the publication of the results of the 2011 Census of Population. In addition
ministers’ salaries will be reduced, political expenses vouched for and severance payments
for ministers axed. No political pensions will be paid to sitting TDs and in future no retired
politician will get a political pension until the national retirement age. Politics must be about
service to the public, not financial gain for politicians.
We will ensure our Government is seen to be held to account
We believe that in recent years an over-powerful Executive has turned the Dáil into an
observer of the political process rather than a central player and that this must be changed.
We will:
Amend the Constitution to Give Dáil committees Full Powers of Investigation: The
Abbeylara Supreme Court decision currently limits the ability of Dáil committees to hold
investigations into crucial issues of public concern, such as the banking crisis.
Reduce the number of committees and give key committees constitutional standing: the
Dáil needs fewer but stronger committees, resourced properly.
We will introduce a role for the Ceann Comhairle in deciding whether a Minister has failed to
provide reasonable information in response to a question.
We propose a radical extension of the parliamentary question system, so that it shall be a statutory
duty on any body established by or under statute, or with a majority ownership or funding by the
State, to submit to the same parliamentary questions regime as applies to Government
departments. This will involve a liability to provide answers to written questions within a
specified number of Dáil sitting days. (We will however recognise the special position of bodies
with a commercial mandate operating at arm’s length from Government.)
In addition we propose a new procedure for answering oral questions by state bodies. The chief
executive of every state funded body will be required to attend the relevant Oireachtas committee
on a regular basis to answer oral parliamentary questions that can be submitted by any member,
on a similar basis to the attendance of Ministers before the full Dáil.
We will amend Dáil standing orders to ensure that replies to written questions are furnished
within a specified number of days, even during Dáil recess.
To make the oral question process more effective, we propose to increase the time allocated to
oral question. To provide balance there will be a reduction in the number of oral questions being
submitted to one per member. A member must be present in the chamber when his or her question
is reached, although they may defer to another member the right to ask a supplementary question.
19. We Will Overhaul the Way Politics and Government Work
We will radically overhaul the way Irish politics and Government work. The failures of the
political system over the past decade were a key contributor to the financial crisis and the system
must now learn those lessons urgently.
Government is too centralised and unaccountable. We believe that there must also be a
real shift in power from the State to the citizen.
We will legislate on the issue of cabinet confidentiality.
We will legislate to restore the Freedom of Information Act to what it was before it was underined
by the outgoing Government, and we will extend its remit to other public bodies including the
administrative side of the Garda Síochána, subject to security exceptions.
We will extend Freedom of Information, and the Ombudsman Act, to ensure that all statutory
bodies, and all bodies significantly funded from the public purse, are covered.
We will introduce Whistleblowers legislation.
We will introduce spending limits for all elections, including Presidential elections and
constitutional referendums, including for a period in advance of scheduled Local, European,
General and Presidential Elections.
We will significantly reduce the limits on political donations to political parties and candidates to
!2,500 and !1,000 respectively, and require disclosure of all aggregate sums above !1,500 and
!600 respectively.
We will introduce the necessary legal and constitutional provisions to ban corporate donations to
political parties.
We will amend the Official Secrets Act, retaining a criminal sanction only for breaches which
involve a serious threat to the vital interests of the state.
We will introduce a statutory register of lobbyists, and rules concerning the practice of lobbying.
Our open government legislation will also establish an Electoral Commission to subsume the
functions of existing bodies and the Department of the Environment.
We will amend the rules to ensure that no senior public servant (including political appointees) or
Minister can work in the private sector in any area involving a potential conflict of interest with
their former area of public employment, until at least two years have elapsed after they have left
the public service.
Restrictions on the nature and extent of evidence by civil servants to Oireachtas committees will
be scrapped and replaced with new guidelines for civil servants that reflect the reality of the
authority delegated to them and their personal accountability for the way in which it is exercised.
20. We propose an Investigations, Oversight and Petitions Committee of the Oireachtas. It would be a
powerful committee, constructed on the lines of the Public Accounts Committee, bi-partisan in
structure and chaired by a senior member of the opposition.
The Committee would be the formal channel of consultation and collaboration between the
Oireachtas and the Ombudsman, responsible for receiving and debating her annual and special
reports and for ensuring that her criticisms and recommendations are acted upon. For that
purpose, she would attend as a regular witness before the committee.
The Committee would receive parliamentary petitions from individuals and groups in the
community seeking the redress of grievances connected with the public services of the State and
with the public administration generally. Its functions would be to act as a "clearing house",
directing complaints to those bodies most competent to act on them: the Ombudsman, the Data
Protection Commissioner, the Local Government Auditor, the Oireachtas committee that has
oversight of the relevant Department, and so on.
We will refer to the Constitutional Convention the issue of reducing the Voting Age to 17
and giving citizens the right to vote at Irish embassies in the presidential election.
We recognise that there needs to be a substantial increase in the number of women in
politics. We will ask the Constitutional Convention, which is examining electoral reform,
to make recommendations as to how the number of women in politics can be increased.
Public funding for political parties will be tied to the level of participation by women as
candidates those parties achieve.
We will make good corporate governance the law, not an optional extra, and enact legislation to
provide for binding code of practice for corporate governance, which will be obligatory for
companies wishing to be listed on Irish stock exchange.
We intend to end the heavy dependence on a very limited pool of extremely expensive private
solicitors firms providing legal services to the State and agencies, look at ways to require agencies
to seek legal advice from the CSSO and not from the private sector in order to save costs, and
ensure that legal work at the bar for the State is spread more equitably rather than confined to a
very limited pool as at present. We will progress the Statute Law Revision Project in order to
enhance public accessibility to the statute book.
Showing Leadership
Politicians should be treated in the same manner as all other public servants.
We will abolish the additional pay for Ministers who leave office. We will restrict the payment of
pensions to politicians so that in future a member can only qualify for a pension at the national
retirement age (currently 65) and upon leaving public life. We will cap taxpayers’ subsidies for all
future pension schemes for politicians (and indeed for everybody) that deliver income in
retirement of more than !60,000.
We will halve the cost of the existing provision of ministerial transport. We will provide for the
efficient use of transport including the release of garda drivers to normal policing duties. We will
end the automatic right to state cars for former office holders and other state officials.
We will introduce a new code of practice for the use of the government jet, ensuring transparent
and cost effective travel.
21. Dáil Reform
We are proposing radical reform of the way the Dáil operates. Our objective is to make Dáil
Éireann fit for purpose in the 21st century. To carry out this task we must identify the
fundamental goals of a properly functioning Dáil. These include:
• to legislate,
• to represent the people on issues of national concern,
• more effective financial scrutiny, and
• to hold the executive to account.
On each of these headings the Dáil falls short, sometimes far short, of what is required. We
will institute a programme of short-term and urgent Dáil reform, within the existing
Constitution, to make the Dáil fit for purpose.
• We will give committees the power to introduce legislation, while a new 10 Minute
Rule will allow backbench TDs to introduce their own Bills. We will also tackle the
huge over-use of guillotines to ram through non-emergency legislation
• We will introduce a package of changes that will bring about a 50 per cent increase in Dáil
sitting days. Dáil Éireann will in future meet four days a week. There will be a summer recess
of just six weeks and significantly reduced breaks at Christmas and Easter. We will abandon
the practice of providing a “mid-term break” – a full week off at St Patrick’s Day and
Hallowe’en. When the Dáil is not in session the Committees shall agree by roster that a
particular Committee shall meet in the Dáil Chamber.
• We propose to break the Government monopoly on legislation and the stranglehold over the
business of the Dáil, by providing that the new Friday sittings will be given over exclusively
to committee reports and private members business except where urgent government business
must be taken.
• We will enhance the democratic process by involving public representatives at an earlier stage
of the legislative process, particularly before Bills are published. We will amend cabinet
procedure instructions so as to allow government to publish the general scheme of a Bill so
that Oireachtas Committees can debate and hold hearings at an early stage.
• While recognising that there may be exceptional circumstances in which debate may need to
be concluded by a given deadline, we will restrict the use of guillotine motions and other
procedural devices that prevent Bills from being fully debated, so that guillotining is not a
matter of routine as it has become at present, particularly at the end of a session.
• We will also deal with the related problem of legislation being shunted through at high speed
and will ensure that Dáil standing orders provide a minimum of two weeks between each
stage of a Bill, except in exceptional circumstances.
• In order to enhance the role of the legislative committees, we will organise a committee week
every fourth sitting week. The Dáil plenary will sit only for questions, including Leaders’
22. Questions and the order of business and the remainder of the day will be taken up in
committee.
• We will establish a petition system to the Dáil, similar to that operating in the European
Parliament, to be managed by a specific Dáil committee that will investigate and report on
petitions which raise issues warranting attention.
• We will enhance the parliamentary relationship with the European Parliament in conjunction
with Ireland’s MEPs. These arrangements will include regular attendance by MEPs at
relevant Dáil committees.
• We will legislate and change Dáil standing orders to ensure the absolute confidentiality of
information entrusted to members of the Dáil by their constituents or informants, and ensure
that such information cannot be compulsorily disclosed through the legal process except with
the consent of the informant.
• We will significantly revamp the adjournment debate format. It will be renamed the topical
issue debate. There will be a minimum of 5 topical issues. These will be taken in the middle
of the day and there will be provision for questions at the end. A Minister or Minister of State
from the relevant Department will be present and there will be an end to the practice of one
junior Minister reading out scripts on behalf of a number of Departments about a range of
issues of which he or she knows nothing.
• The standing orders on urgent issues are used regularly to attempt to raise issues that are not
urgent and such requests are almost invariably refused. We will make the Dáil rules for
raising urgent issues more meaningful by requiring a minimum number of signatories for such
a request.
• In future standing order 32 requests will not be read out.
More Effective Financial Scrutiny
We will establish an independent Fiscal Advisory Council (FAC), separated from fiscal decision-
makers in government, that would undertake official fiscal macroeconomic projections and
monitoring.
The Fiscal Advisory Council functions would include identifying and advising on cyclical and
counter-cyclical fiscal policies and structural deficits; the cyclical or temporary nature of
particular revenues; and the need to maintain an appropriate and effective tax base.
The Fiscal Advisory Council will be independent of Government and will report to the Dáil and
the public.
The modeling assumptions and inputs of the Fiscal Advisory Council will, as far as possible, be
open to public scrutiny and its outputs would be freely available to external bodies, including in
particular, the opposition parties.
We will open up the Budget process to the full glare of public scrutiny in a way that restores
confidence and stability by exposing and cutting failing programmes and pork barrel politics.
We will publish cost-benefit analyses for major infrastructure proposals and “tax expenditures” in
advance of Government approval.
23. Public sector bodies will be required to publish balance sheets and to move to accruals from cash-
flow accounting.
Every Purchase Order by a Government Department or agency for more than !20,000 will be
published online. We will give the Comptroller and Auditor General and Oireachtas Committees
the extra powers needed to carry out value-for-money audits of State programmes.
Public bodies will be required to openly compete for budget resources by publishing pre-budget
spending requests, and what they would deliver in return for such allocations to help deliver
Programme for Government.
We will conduct a Comprehensive Spending Review to examine all areas of public spending,
based on the Canadian model, and to develop multi-annual budget plans with a three-year time
horizon. This plan will be presented to the Dáil for debate.
The Comprehensive Spending Review will assess effectiveness in achieving desired outcomes,
and value for money.
The CSR will examine the number, range and activities of bodies funded significantly from public
purse, including at local government level, and reduce numbers where appropriate. In future,
when proposing a new agency, it will be necessary to prove that the proposed new functions
cannot be carried out within the existing framework.
Every public body will set out clear and unambiguous long, medium and short term strategic
priorities, which will be clearly communicated to public service and citizens. Strategic priorities
will be translated into high level goals for all Departments, on a ‘whole of government’ basis, and
in consultation with Ministers.
Performance indicators will be identified to monitor progress on high level priorities. Annual
reports of departments and agencies will include output statements and audited financial accounts
prepared on generally accepted accounting principles. The performance information provided in
output and outcome-focused measurement will feed into the decision making process for future
plans at political and senior management level.
The reform process will provide for increased delegation of budgets, subject to detailed plans,
relevant performance reporting and audited accounts compiled in accordance with generally
accepted accounting principles.
Detailed business cases will be required for major projects, with review and reporting
requirements built in to the plan. Sanctions will be imposed at an early stage for significant
overruns.
We will change the current emphasis on performance reporting to performance management. All
medium to long-term projects that involve significant public spending will be subject to cost
benefit analysis, and to on-going evaluation.
The results of programme evaluations will be published and programmes not meeting their
objectives will be wound down.
Performance and progress will be published in a new, audited annual Public Service Delivery
Reports. Oireachtas Committees will expose any failure to hit milestones and targets. Each
sectoral Committee will take on new powers, similar to those wielded by Public Accounts
Committee, to hold Ministers and public servants to account for value for money. This will feed
into Oireachtas consideration of the next Budget.
24. Where appropriate, agency boards will be scrapped and agency managers will be accountable
directly to Ministers.
We will bring forward the annual Estimates cycle, so that it becomes more timely and relevant. It
will in future start at the beginning of the preceding year and conclude by the summer.
The annual Estimates will in future distinguish between monies being allocated to maintaining the
existing level of service for existing programmes and money to support new programmes or
policy decisions.
The Book of Estimates will be accompanied by a detailed performance report on what the
previous year’s spending had achieved. It will also give details of the level of performance
achieved by agencies under service delivery agreements with Government.
Oireachtas members will be given, from within existing resources, dedicated resources for the
proper scrutiny of the Estimates.
We will reform the Department of Finance by bringing in new leadership and skills to restore its
capacity and credibility in financial and macroeconomic management. Specifically, we will make
an external appointment of an economist of international repute to head up the Department’s
Budget and Economic Policy division.
We will give the Comptroller and Auditor General the extra powers needed to carry out value-for-
money audits of State programmes.
The National Parliament and the European Union
We believe the Oireachtas must be given responsibility for full scrutiny of EU draft proposals, for
proper transposition of EU legislation and for holding the Government accountable for the
decisions it takes in Brussels. All Oireachtas committees must share the burden of dealing with
EU policies and legislative proposals. Systems must be put in place to ensure that Ministers do
not bypass the Oireachtas and make decisions in Brussels on EU matters before these matters are
subjected to scrutiny by the Oireachtas.
The Taoiseach will be obliged to brief the Oireachtas prior to attending European Council
meetings and to engage with the Oireachtas in debate on EU issues of national significance and
concern.
The Oireachtas will devote a full week each year to debating major EU issues of concern to
Ireland such as the Draft Annual Work Programme, Green and White Papers and proposals for
EU budget co-ordination.
The Oireachtas will be linked up with the Irish offices of the European Commission and the
European Parliament in communicating Europe to the Irish people. Outreach programmes,
meetings and competitions particularly in schools will be organised and TDs and Senators invited
to participate.
Under the Lisbon Treaty provisions the Oireachtas is entitled to receive all documents produced
by the EU Commission at the same time as the EU institutions and the Irish Government receive
them. We will ensure all EU documents are forwarded to the Oireachtas through the Ceann
Comhairle and the Cathaoirleach. They will transmit them to the Oireachtas library and the
25. relevant Committees. Every TD and Senator will be informed of the documents as they arrive, so
that they can engage in EU matters that concern or interest them.
EU’s Annual Work Programme
The EU Commission produces its Draft Annual Work Programme in October/November for the
following year. We propose that the week in which the 9th May, “Europe Day” falls will be the
occasion for a week-long parliamentary debate on Ireland’s priorities within the EU. The debate
will review the national progress in implementing the current year’s work programme and focus
on identifying the major issues of concern to Ireland for inclusion on the following year’s EU
Draft work Programme.
Oireachtas Committees
The most significant new power conferred on the Oireachtas by the Lisbon Treaty is the power to
ensure that the policies of the EU comply with the principle of subsidiarity. In short that the EU
does not overstep its competences under the Treaties and intrude in areas that are the preserve of
the Member States.
We propose that Oireachtas Committees will play the major role in scrutinising the EU in the
coming years. Greater emphasis will be placed on deepening the involvement in EU matters of
the Oireachtas committees that shadow the work of each Government Department. We will oblige
all sectoral committees to deal with EU matters that come within their remit within a defined
period of time.
Committees will be supplemented by a system of subcommittees and a system of rapporteurs who
have a particular interest in an area of policy or scrutiny and who volunteer to carry out an in-
depth study for the relevant committee.
Transposing EU Legislative Measures
The situation can no longer be tolerated where Irish Ministers enact EU legislation by statutory
instrument. The checks and balances of parliamentary democracy are by-passed. The
parliamentary treatment accorded home-produced draft legislation must be extended to draft
legislation initiated within the EU institutions.
The Regulatory Impact Assessments prepared for Ministers on all EU Directives and significant
Regulations will be forwarded automatically to the relevant sectoral Oireachtas Committees.
These Committees should advise the Minister and the Joint Committee on European Affairs as to
whether the transposition should take place by Statutory Instrument or by primary legislation.
Where primary legislation is recommended the full Oireachtas plenary process should be
followed.
Oireachtas Accountability
All Ministers will be obliged to appear before their respective Committees or before the
Committee on European Affairs prior to travelling to Brussels for meetings of the Council where
decisions are made.
26. Reforming local government
We will move many of the functions currently being performed by agencies – such as
community employment and enterprise supports – back to local government and ensure
that all property-related revenues are part of the income stream of local government.
We will abolish the position of County Manager and replace it with that of Chief Executive, with
a limited range of executive functions. The primary function of the Chief Executive will be to
facilitate the implementation of democratically decided policy.
A democratically-decided Regional or City Plan will replace the present top-down Strategic
Planning Guideline model.
We will give councillors a legal power to seek reports from, and question in public, all providers
of public services in their area. And we will also empower them to question private sector service
providers such as internet and digital TV providers, local banks or private schools, on their public
service remit.
The Local Government Director of Audit will be required to publish an annual report covering all
his functions to the Oireachtas Committee on Environment. The Report will assist in determining
where local government can produce greater efficiencies.
We will examine what services could be converged between two or more local authorities, such as
technology support, human resources and fire services. We will introduce a single national
building inspectorate service.
Local authorities that deliver efficiencies, either alone or through sharing services, over and above
what is required will be allowed re-invest a proportion of those savings in local initiatives.
We are committed to a fundamental reorganisation of local governance structures to allow for
devolution of much greater decision-making to local people. We will give local communities
more control over transport and traffic, economic development, educational infrastructure, and
local responses to crime and local healthcare needs.
In local services, we will establish a website – www.fixmystreet.ie – to assist residents in
reporting problems with street lighting, drainage, graffiti, waste collection and road and path
maintenance in their neighbourhoods, with a guarantee that local officials will respond within two
working days.
We will merge local enterprise and job support functions of local, regional and national agencies
into a single business and enterprise unit within Local Authorities. This will allow streamlining of
local job creation and support functions, increased shared knowledge capability and resources
while saving on administration costs.
27. Public Sector Reform
Public service is, and must remain, about serving the public, not making a profit. It is about
serving the common good, not sectional interests. Real reform of the public sector will
require a commitment from the whole of government to become more transparent,
accountable and efficient. It will require:
• Concrete mechanisms to improve performance, using a range of external standards
and benchmarks, and to deal with persistent under-performance.
• A new approach to government which empowers public servants by devolving more
power.
• New personnel from outside the current system, particularly experts in change
management.
• Citizens having a basic right to key information on the performance of key services.
Government has to deliver better value in order to reduce the deficit and protect frontline
services. We will, subject to there being no conpulsory redundancies and to the protection of
front line services:
• Reduce the total number of public sector employees by between 18,000 and 21,000
by 2014, compared to the total number at the end of 2010.
• Reduce this number by a further 4,000 by 2015.
In order to protect frontline services, even as employee numbers are reduced, we will make
fundamental changes to the way government operates.
A Strategic Centre
A key condition of a successful turn-around strategy for the country is a more joined-up
strategic centre at the heart of government, with the power to confront and break up the
concentrations of power that so damaged the country.
• We will reduce the size of the Department of An Taoiseach, transforming it into the
equivalent of a Cabinet Office that oversees the delivery of a new Programme for
Government.
• We will bring new talent and skills into the Department of Finance.
• We will bring in new skills and rigour into policy-making across all Departments.
All appointments at Principal Officer level and above will be open to external
competition and at least one-third of such appointments will be reserved for
candidates from outside traditional civil service structures for a 5-year period.
• We will strengthen corporate governance legislation and enforcement.
Open Government
Where there is secrecy and unaccountability, there is waste and extravagance. We will pin
down accountability for results at every level of the public service – from Ministers down –
1
28. with clear consequences for success and failure. Ministers will be responsible for policy and
procurement and public service managers for delivery.
• Where appropriate, agency boards will be scrapped and agency managers will report
directly to Ministers and their Departments on performance against targets.
• We will put in place a Whistleblowers Act to protect public servants that expose
maladministration by Ministers or others, and restore Freedom of Information.
• There will be no more “golden handshakes” for public servants that have failed to
deliver.
• We will overhaul TLAC (Top level Appointments Commission), with the
chairperson and the majority of members drawn from outside the public sector.
• We will require Departments to carry out and publish Regulatory Impact
Assessments (RIAs) before Government decisions are taken.
• We will introduce a reformed incentive system for all grades within core
Government departments to reward cross-departmental teams that deliver audited
improvements in service delivery and cost effectiveness.
Waste
We will cut back the waste and political cronyism built up over the last decade by paring
back the expensive, fragmented structures of public administration.
• We will go beyond the recommendations of An Bord Snip to rationalise core
processes that are duplicated across the public service, by establishing shared back-
office operations for information technology, human resource management,
payments and entitlement applications, business inspections and procurement.
• We will review the Local Government Efficiency Review as part of our
Comprehensive Spending Review.
• We will make substantial cuts to the number of State bodies and companies.
• We will instigate a Government-wide review to identify and eliminate non-priority
programmes and outsource, where appropriate, non-critical functions.
“Choice and Voice” for Service Users
Rather than giving fixed budgets to traditional public service providers like the HSE, VECs
and FÁS, we will put resources into the hands of citizens to acquire services that are tailored
to better suit their needs and less expensive for the taxpayer.
• Schools will publish annual reports.
• In local services, we will establish a website – www.fixmystreet.ie – to allow
residents to report problems with street lighting, drainage, graffiti, waste collection
and road and path maintenance in their neighbourhoods, with a guarantee that a local
official will respond within 2 working days.
2
29. • We will establish a new model of financing social interventions – called Social
Impact Bonds – that share audited exchequer savings with charitable and voluntary
organisations.
• Where appropiate we will open up the delivery of public services to a range of
providers.
• We will give schools, hospitals and other public service bodies new freedoms –
within strict budgets and new accountability systems – to set their own staffing
needs, automate routine processes and adapt work practices to local staff and
customer needs.
Empowering the Civil Service
We will legislate for a reformulated code of laws, replacing both the Ministers and
Secretaries Acts and the Public Service Management Act, which will spell out the legal
relationship between Ministers and their civil servants and their legal accountability for
decisions and for management of Departments.
• The system of implied general delegation of a Minister’s statutory powers to civil
servants will be abolished and replaced by a fixed and determined system of
delegation of specified powers to specified officers.
• Where a responsibility is delegated through several civil service grades, each grade
will be held accountable for their element of it and departmental officials giving
evidence to Oireachtas committees will be obliged to speak on their own behalf for
their delegated responsibilities and, where appropriate, defend themselves and their
actions.
• Delegation orders will spell out the functions of the Minister in supervising the
exercise of delegated powers: the Minister will be responsible for ensuring that
adequate standards are maintained; outputs are delivered as determined or agreed;
and procedures are in place to provide the Minister with the necessary and correct
information to enable him or her to respond to problems of administration and to
give an account of those problems, and of any necessary corrective action, to the
Dáil and to the public.
We will bring to an end the unacceptable executive practice where no record is kept of
ministerial involvment with an issue and resulting decisions.
We will review the grading structure of the civil service and public service and reduce
number of management grades. Public service managers will be given greater autonomy in
deciding how they use staffing budgets and resources to achieve agreed outcomes.
We will remove barriers to mobility across the public service. As part of this we will create
a new tier of senior public service management structures, where senior officials are rotated
across the public sector to nurture the collaborative culture needed to tackle the biggest
cross-cutting social and economic challenges.
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30. High level strategic goals will be reflected in individual goals, in a new performance
management and development system for staff. Staff recognition schemes will be developed
and devolved, with particular emphasis on team awards. Staff will be encouraged to put
forward suggestions for improving service delivery and organisation efficiency and
effectiveness.
Government services websites, public offices, telephone services, and helplines will be
reconfigured to facilitate access to a broad range of government services through a single
point of contact.
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31. Fairness
Health and Mental Health
This Government is the first in the history of the State that is committed to developing a
universal, single-tier health service, which guarantees access to medical care based on
need, not income. By reforming our model of delivering healthcare, so that more care is
delivered in the community, and by reforming how we pay for healthcare through
Universal Health Insurance, we can reduce the cost of achieving the best health outcomes
for our citizens, and end the unfair, unequal and inefficient two-tier health system.
Health Service Reform
This Government will introduce Universal Health Insurance with equal access to care for
all. Under this system there will be no discrimination between patients on the grounds of
income or insurance status. The two-tier system of unequal access to hospital care will
end.
The Universal Health Insurance system will be designed according to the European
principle of social solidarity: access will be according to need and payment will be
according to ability to pay. The principle of social solidarity will underpin all relevant
legislation.
As a statutory system of health insurance, guaranteed by the State, the Universal Health
Insurance system will not be subject to European or national competition law.
This Government will act speedily to reduce costs in the delivery of both public and
private health care and in the administration of the health care system.
We will introduce a system of risk equalisation for the current insurance market.
A Special Delivery Unit will be established in the Department of Health to assist the
Minister in reducing waiting lists and introducing a major upgrade in the IT capabilities
of the health system.
A Patient Safety Authority, incorporating HIQA, will be established.
The Minister for Health will be responsible for health policy and for implementing this
ambitious programme of reform and cost control.
The Health Service Executive will cease to exist over time. Its functions will return to the
Minister for Health and the Department of Health and Children; or be taken over by the
Universal Health Insurance system. Staff will be deployed accordingly.
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32. Primary Care
Universal Primary Care will remove fees for GP care and will be introduced within this
Government’s term of office.
The legislative basis for Universal Primary Care will be established under a Universal
Primary Care Act.
Universal Primary Care will be introduced in phases so that additional doctors, nurses
and other primary care professionals can be recruited.
During the term of this Government, GP training places will be increased. GPs will be
encouraged to defer retirement and will be recruited from abroad, and the number of
practice nurses will be increased so that GPs can delegate care when appropriate to
nurses.
Access to primary care without fees will be extended in the first year to claimants of free
drugs under the Long-Term Illness scheme at a cost of !17 million.
Access to primary care without fees will be extended in the second year to claimants of
free drugs under the High-Tech Drugs scheme at a cost of !15 million.
Access to subsidised care will be extended to all in the next phase.
Access to care without fees will be extended to all in the final phase.
Under Universal Primary Care, GPs will be paid primarily by capitation for the care of
their patients and will work in primary care teams with other primary care professionals.
A new GP contract will provides incentives to GPs to care more intensively for patients
with chronic illnesses. This will significantly reduce pressures and demands on the
hospital system.
Registration with a primary care team will be compulsory once the Universal Primary
Care system is fully implemented.
Exchequer funding for primary care will go to a Primary Care Fund on a transitional
basis, which will pay providers of primary care. The goal under UHI will be to create an
integrated system of primary and hospital care.
Ring-fenced funding will be provided to recruit additional psychologists and counsellors
to community mental health teams, working closely with primary care teams to ensure
early intervention, reduce the stigma associated with mental illness and detect and treat
people who are at risk of suicide.
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33. Universal Hospital Care
A system of Universal Health Insurance (UHI) will be introduced by 2016, with the
legislative and organisational groundwork for the system complete within this
Government’s term of office.
UHI will provide guaranteed access to care for all in public and private hospitals on the
same basis as the privately-insured have now.
Insurance with a public or private insurer will be compulsory with insurance payments
related to ability to pay. The State will pay insurance premia for people on low incomes
and subsidise premia for people on middle incomes.
Everyone will have a choice between competing insurers.
The VHI will be kept in public ownership to retain a public option in the UHI system.
Exchequer funding for hospital care will go into a Hospital Insurance Fund which will
subsidise or pay insurance premia for those who qualify for subsidy.
The Hospital Insurance Fund will oversee a strong and reformed system of community
rating and risk equalisation; provide direct payments to hospitals for services that are not
covered by insurance such as Emergency Departments and ambulances; and provide
matching payment to hospitals for treatments delivered.
The Hospital Insurance Fund will also control those health care costs for which central
control is most effective.
Under UHI insurers will be obliged to offer the same package of services to all.
This guaranteed UHI package will be determined by the Minister for Health in
consultation with the Hospital Insurance Fund and medical experts and will be regularly
reviewed in a process to be established in legislation, the Universal Health Insurance Act.
Insurers will not be allowed to sell insurance giving faster access to procedures covered
by the UHI package.
Hospitals and clinics which participate in supplying care under UHI will not be allowed
to sell faster access to procedures covered by the UHI package.
A White Paper on Financing UHI will be published early in the Government’s first term
and will review cost-effective pricing and funding mechanisms for care and care to be
covered under UHI.
The legislative basis for UHI will be established by the Universal Health Insurance Act.
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34. Hospitals
Under UHI public hospitals will no longer be managed by the HSE. They will be
independent, not-for-profit trusts with managers accountable to their boards.
Boards will include representatives of local communities and staff.
Smaller hospitals may combine in a local hospital network with a shared management
and board.
Hospitals will be paid according to the care they deliver and will be incentivised to
deliver more care in a “money follows the patient” system.
Insurers will negotiate directly with hospitals to help control costs and encourage
innovation in the delivery of care.
Insurers will not take over the running of hospitals which will be independent providers
of care separate from insurers as purchasers of care.
The Minister for Health will be responsible for hospitals policy and determining that
hospitals which play an important role in an area should not be allowed to close under
UHI.
The Hospital Insurance Fund will assist hospitals in more remote locations that may not
have a large throughput of patients to continue to provide important local services.
To ensure that hospitals compete on an equal footing, public hospitals will be
compensated for costs that they bear that private hospitals do not such as Emergency
Departments and training health care professionals.
The Patient Safety Authority will introduce a national licensing system for hospitals, and
will oversee the transition of hospitals from the HSE to independent local control.
The existing policy of co-location of private hospitals on public hospital lands will cease.
Tax incentives for private hospital developments will cease.
Pathway to Universal Hospital Care Insurance
In the first term of this Government, the foundations will be laid for the introduction of
Universal Hospital Care Insurance:
• The legislative basis for UHI will be enacted.
• Public hospitals will be given autonomy from the HSE.
• The HSE’s function of purchasing care for uninsured patients will be given to
a Hospital Care Purchase Agency which will combine with the National
Treatment Purchase Fund to purchase care for the uninsured over this
transition period.
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35. • This separation of purchaser-provider functions will enable the development
of a money follows the patient system of purchase of care for people without
insurance before the implementation of the UHI system.
Care of Older People and Community Care
Investment in the supply of more and better care for older people in the community and
in residential settings will be a priority of this Government.
Additional funding will be provided each year for the care of older people.
This funding will go to more residential places, more home care packages and the
delivery of more home help and other professional community care services.
The Fair Deal system of financing nursing home care will be reviewed with a view to
developing a secure and equitable system of financing for community and long-term care
which supports older people to stay in their own homes.
Integrated Care
The integration of care in all settings is key to efficient health care delivery, in which the
right care is delivered in the right place.
Integration of care will be the responsibility of an Integrated Care Agency under the
aegis of the Minister for Health.
This agency will oversee the flow of centrally tax-funded resources between the different
arms of the system so that there are incentives for care to occur in the best setting.
Cost Control
Reference pricing and greater use of generics will be introduced to reduce the State’s
large drugs bill and the cost to individuals of their medications.
Under the new GP contract the rate of remuneration of GPs will be reduced.
Under a new consultant’s contract hospital consultants’ remuneration will be reduced.
Action will be taken to reduce the cost of procurement for medical equipments and
construction of facilities.
Health Administration
The Minister for Health and the Department of Health will be responsible for policy and
spending.
The HSE will cease to exist as its functions are given to other bodies during this process
of reform.
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36. The HSE hospital purchasing arm will merge with the NTPF to become a new purchaser
of public patient care during this period of transition.
HSE hospitals will become autonomous providers of care.
Capital developments in Health
Health capital spending will be a priority.
Within the Health capital budget, the immediate priority areas will be primary care
centres, step-down and long-term care facilities, and community care facilities such as
day centres for older people.
The completion and commissioning of the cystic fibrosis unit will be expedited.
The National Children’s Hospital will be built.
Mental Health
Our policy on mental health incorporates the recommendations of A Vision for Change.
We are committed to reducing the stigma of mental illness, ensuring early and
appropriate intervention and vastly improving access to modern mental health services in
the community.
A comprehensive range of mental health services will be included as part of the standard
insurance package offered under Universal Health Insurance.
Given the central role of primary care in our reforms, we will ensure that patients can
access mental health services such as psychologists and counsellors in the primary care
setting. We will also strengthen GP education and training in mental health so that they
can better diagnose, treat and refer as necessary.
We will ring fence !35m annually from within the health budget to develop community
mental health teams and services as outlined in A Vision for Change to ensure early
access to more appropriate services for adults and children and improved integration with
primary care services.
Part of the ring-fenced funding will be used to implement Reach Out, the National
Suicide Prevention Strategy, to reduce the high levels of suicide.
We will close unsuitable psychiatric institutions moving patients to more appropriate
community-based facilities and will develop specific strategies for elderly patients and
those with intellectual disabilities who remain under the care of mental health services.
To ensure a joined-up approach to mental health in the community we will establish a
cross-departmental group to ensure that good mental health is a policy goal across a range
of people’s life experiences including education, employment and housing for example.
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37. We will endeavour to end the practice of placing children and adolescents in adult
psychiatric wards.
We will review the Mental Health Act 2001 in consultation with service users, carers and
other stakeholders, informed by human rights standards, and introduce a Mental Capacity
Bill that is in line with the UN Convention on the Rights of Persons with Disabilities.
Other health priorities
We will develop a national Alzheimer’s and other dementias strategy by 2013 to increase
awareness, ensure early diagnosis and intervention, and development of enhanced
community based services. This strategy will be implemented over five years.
We will introduce a cervical cancer vaccination catch-up programme for all girls in
secondary school. We will also extend Breastcheck to 65-69 year old women.
We will develop a National Carers Strategy to support carers and to address issues of
concern.
We will reopen discussions with the Irish Thalidomide Association regarding further
compensation for victims of Thalidomide.
We will seek a mechanism to compensate those women who were excluded on age
grounds alone from the Lourdes Hospital Redress Scheme.
Bioethics
We will legislate to clarify the law surrounding assisted human reproduction including
the law relating parental relationships arising from assisted human reproduction.
We will legislate to regulate stem cell research.
We acknowledge the recent ruling of the European Court of Human Rights subsequent to
the established ruling of the Irish Supreme Court on the X-case. We will establish an
expert group to address this issue, drawing on appropriate medical and legal expertise
with a view to making recommendations to Government on how this matter should be
properly addressed.
We will legislate for post-mortem procedures and organ retention practices as
recommended by the Madden report.
We will legislate to change the organ donation to an opt-out system for organ
transplantation, rather than an opt in system so as to improve the availability of organs for
patients in desperate need.
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38. Education
This Government’s ambition is to build a knowledge society. Education is at the heart of
a more cohesive, more equal and more successful society, and it will be the engine of
sustainable economic growth. Ireland has experienced a decline in educational outcomes
in recent years. We will draw from top performing education models like Finland to
reverse this trend. Even in our country’s crisis, we can make progress in education and
protect frontline services.
Early Childhood Care and Education
We will maintain the free pre-school year in Early Childhood Care and Education to
promote the best outcomes for children and families. We will improve the quality of the
pre-school year by implementing standards and reviewing training options.
As resources allow, this Government will invest in a targeted early childhood education
programme for disadvantaged children, building on existing targeted pre-school supports
for families most in need of assistance such as the young ballymun project.
Empowering Schools to Improve Standards
A priority in education will be to recruit, train and support the highest calibre of teachers.
School leadership will be fundamental to furthering this aim.
We will give greater freedom and autonomy to school principals and boards to raise
educational standards by devolving more responsibility locally, with greater freedom to
allocate and manage staff with required flexibility and to delegate management
responsibilities to teachers as school priorities require.
We will require schools, with the support of the Inspectorate, to draw up five year
development plans for their schools and individual teachers.
Administrative functions, relating to maintenance, school building projects and co-
ordination of support services currently carried out by principals will be devolved locally.
Protecting the Frontline
Education will be a priority for this Government. It will endeavour to protect and
enhance the educational experience of children, young people and students. To that end,
it will endeavour to protect frontline services in education, and seek efficiencies in work
and school practices, in line with the Croke Park Agreement.
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39. Improving Outcomes
A longer term aim of this Government will be to position Ireland in the top ten
performing countries in the OECD Programme for International Student Assessment
(PISA).
We will review Junior and Leaving Certificate systems and implement reforms necessary
to encourage greater innovation and independent learning, building on the National
Council for Curriculum and Assessment’s work in this area.
Maths and science teaching at second level will be reformed, including making science a
compulsory Junior Cert subject by 2014. Professional development for maths and science
teachers will be prioritised.
The system for evaluating schools will be reformed so parents have access to more
information when choosing a school for their family. A new system of self-evaluation
will be introduced, requiring all schools to evaluate their own performance year on year
and publish information across a wide range of criteria.
A bonus points system for maths, which is linked to specific maths or science courses,
will be introduced to encourage greater participation in courses where skills shortages
currently exist.
Making Literacy a National Cause
This Government believes that no child should leave an Irish school unable to read and
write.
A national literacy strategy for children and young people will be developed as a matter
of urgency, with school-level targets that are related to national targets. Every school will
be required to have a literacy action plan, with demonstrable outcomes. Responsibility
for achieving these outcomes will be vested in the school principals, who will also
receive continuous professional development to support the implementation of the
strategy.
Pre-service and in-service training in teaching of literacy for all primary and secondary
school teachers will be improved, with dedicated literacy mentors to work intensively
with teachers in most disadvantaged primary schools.
Together with a new focus on how literacy is taught, time spent on quality literacy tuition
is important. DEIS primary schools will be required to teach literacy for 120 minutes per
day; non-DEIS schools to teach literacy for 90 minutes per day. This time includes
incorporating structured literacy tuition into teaching of other subjects.
Local authorities will be supported in developing Right to Read campaigns involving
community supports for literacy, from within existing budgets such as more spacious
social housing, longer opening hours for libraries, homework clubs and summer camps
that improve literacy through sport and games.
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